The Korea Housing Finance Corporation said on the 25th it will raise the interest rate on the long-term, fixed-rate, partitioning mortgage loan "Bogeumjari Loan" by 0.30 percentage points starting on the 1st. It is the biggest increase since Dec. 2022 (0.50 percentage points).
Based on the "Akkim-e Bogeumjari Loan," annual rates of 4.35% (10 years) to 4.65% (50 years) apply. For low-income young adults, newlyweds, socially disadvantaged groups, and victims of rental fraud, a preferential rate of up to 1.0 percentage point is applied, bringing the minimum annual rate to 3.35% (10 years) to 3.65% (50 years).
An official at the corporation said, "Since October last year, yields on Treasury bonds and issuance rates of mortgage-backed securities (MBS) have continued to rise, and with external uncertainties expanding due to concerns about a prolonged situation in the Middle East, a rate increase has become unavoidable," adding, "We minimized the increase to ease the burden on low- and middle-income households and end users." If you complete an application for the Bogeumjari Loan by the 31st, you can receive the pre-increase rate.